Argentina's Dairy Industry Overview
In 2023, Argentina continues to be a major contributor to the global dairy market, reflecting a highly developed and dynamic sector. The country is home to approximately 1.6 million dairy cattle, which collectively produce an impressive annual milk output of around 10.5 billion liters.
Production and Processing
The Argentine dairy processing industry is robust, with the capacity to process about 9 billion liters of milk each year. This capability underscores the country's strong infrastructure and processing facilities, critical for maintaining its influential position in the global market.
Cheese and Milk Powder Production
Argentina excels in cheese production, with an annual output of approximately 500,000 metric tons. The nation also produces around 150,000 metric tons of milk powder and whey annually, serving both domestic needs and international markets.
Key Enterprises and Dairy Farms
Prominent companies driving the Argentine dairy sector include La Serenísima (Mastellone Hermanos S.A.), Saputo Inc., and Williner. Notable dairy farms, such as Tambos La Unión and Estancia La Nueva, play crucial roles in supporting milk production.
Exports and Imports
Argentina exports around 3.5 billion liters of dairy products annually, including liquid milk, cheese, and milk powder. The country's significant domestic production capacity ensures self-sufficiency, reducing the need for imports and focusing on expanding export markets.
Significant Events in the Dairy Market
The Argentine dairy industry is navigating several changes and challenges. Notably, the change in Saputo Inc.'s Board of Directors might steer strategic new directions. Despite a projected 7% decline in milk output for 2024, exports are expected to increase by 50%. The completion of the EU-Mercosur trade deal is anticipated to enhance trade relations, while imports from Germany remain suspended due to a Foot-and-Mouth disease alert.
Market dynamics include Arcor's declined bid for full control of La Serenísima, with joint offers with Danone also being turned down. Mastellone, the owner of La Serenísima, foresees progress through increased exports and potential political shifts amidst economic pressures.
Outlook
Despite facing challenges such as rising production costs and climate-related disruptions, Argentina's dairy sector is poised for growth. Innovations like robotic dairy farming in Tacural, Santa Fe, indicate promising advancements. Reports from March 2025 highlight a nearly 16% increase in milk production year-on-year, with a projected annual growth rate of 6%, suggesting a strong recovery.
Economic pressures persist, with a 10% rise in milk production from January to March while milk prices lag behind inflation, posing economic challenges for producers. The Argentine Chamber of Milk Producers, Caprolecoba, is advocating for revised milk compensation in response to these issues.
Export Sector Recovery
In March 2025, Argentina's dairy export sector showed significant recovery, with the average price per tonne exported rising by 7% to USD 3,835.34. The export volume increased by 24.6% to 13,941.61 tonnes, expanding market diversification to 33 international markets.
Saputo remains a major player in Argentina's dairy market, entering in 2003 by acquiring Molfino Hermanos, including the La Paulina brand. The company leads in cheese exports and also produces butter, powdered milk, cream, casein, and whey protein.
Modified: 2025/05/18